Trump, Trudeau disagree on steel tariffs' connection to NAFTA

Prime Minister Justin Trudeau admits he still has some questions about what proposed United States tariffs on our steel and aluminum exports could have on Canadian companies.

"We don't link together the tariffs and the negotiations for NAFTA but we're happy to continue to move forward on the negotiations", Trudeau told CNBC.

The tour is an effort to show the government's support for the industries in the wake of President Donald Trump's plan to impose a 25 per cent tariff on imported steel and 10 per cent on aluminum.

Trump previously explained that he will be flexible on certain countries based on relations in the area of defense, including the amount of money they contribute to North Atlantic Treaty Organisation.

We urge the administration to reconsider this action and continue investigating the impact of steel and aluminum tariffs on the USA economy and steel-consuming sectors downstream. Tariffs artificially raise the prices of steel, causing modifications to tightly integrated global supply chains and companies to be less competitive in global markets.

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Trudeau said the national security argument the USA has made when it comes to considering tariffs for Canadian steel and aluminum makes no sense - a refrain he's hammered in recent weeks. "We know that the collaboration on NORAD, the collaboration on national security issues narrow and broadly is something that is really important to both of our countries".

He will follow that up by speaking to steel industry leaders at the Sheraton Hamilton Hotel during a round table discussion.

Some observers saw the tariff threat as an attempt by the Trump administration to pressure Canada and Mexico to complete the NAFTA talks - giving in to other USA demands or giving up some of their own.

Trudeau says he will keep the pressure on Trump during the tariff negotiations, as well as on negotiations for the North American Free Trade Agreement.

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